Posted on: 23 July 2015
All contractors should keep their ear to the street in an attempt to anticipate jobs showing up. An investor, developer, or other potential client may put out a sudden call for contracts. When they do, you have to make sure you have the equipment you need to handle anything that a client will need of your service.
Procuring new equipment represents a challenge to any small or moderately sized contractor, especially when it's short notice. You may need pieces of heavy construction equipment that you don't currently own. If it's not in your budget to purchase or finance something brand new, you have two options.
Rent or Buy Used Heavy Equipment
When you have to procure equipment, and you have to do it quickly, then renting may seem like the best option.
- Quick procurement
- Newer equipment (usually)
- No need to claim equipment on balance sheet
Renting can also focus your usage of the equipment. For example, if you know you will have the equipment for a certain amount of time, you're more prone to plan accordingly. After all, you want to get all of the use out of it that you can before returning it.
Renting equipment is best for short contracts. Buying used construction equipment is usually a better idea if you stumble into a long-term job. Purchase is also a good option if you see that your business will have to do similar work going into the future.
In addition, purchasing used heavy construction equipment gives you,
- Immediate access to the equipment
- Tax incentives and depreciation
- No downtime or waiting on a third party
Besides, owning your equipment gives you the surety that it's there for you when you need it. There's never really a guarantee that an equipment rental service will have the specific equipment that you need.
Also, if you own it, you can sell it. Your used construction equipment can become the down payment on new equipment if you should ever feel the need to replace it. Otherwise, it can become more capital for your business.
Make Yourself Aware of Your Options
When you hear word that some billionaire investors need the kinds of services you offer, you have to act quickly. If the contracts look nice, then you should have no problem making the initial sacrifice of purchasing the used heavy construction equipment for sale that you need. For a long-term project, the purchase will eventually pay for itself.Share